Adviser > News > January 2010 > Minimum age change - 12 February 2010 deadline for Income Release applications
Minimum age change - 12 February 2010 deadline for Income Release applications
We're introducing a cut-off date of 12 February 2010 for receiving Income Release application forms for customers under age 55.
From 6 April 2010 the minimum age that pension benefits can be taken rises from 50 to 55.
To ensure your clients' arrangements are safely in place before the April deadline, we need to receive applications for our drawdown plan, Income Release, by 12 February 2010 for clients under 55. Completed application forms must be received by our New Business department by this date to be accepted.
This cut-off date will mean we're more likely to receive transfer payments from ceding providers in plenty of time to be able to complete the business and have all new arrangements in place by 6 April 2010.
We will also stop accepting pension sharing on divorce Income Release cases for clients under 55 immediately.
Why are we doing this?
The numerous awards we have won in the last year demonstrate our outstanding reputation for customer service. Having worked so hard to achieve this we don't want to undermine it by failing to complete the expected high volume of business due to insufficient time to receive the transfer payment from the ceding provider.
Our New Business consultants will rigorously chase existing providers for outstanding transfer money to help ensure they are received in time.
What does this mean for transfers?
Single transfers received after 5 April
If we receive a completed application form before 12 February 2010 but payments are not received until 6 April or later, we can't set up an Income Release plan.
Your New Business consultant will contact you to explain the situation and ask if the money should be returned to the ceding provider or whether it should be applied as a personal pension only.
Multiple transfers
If your client is making multiple transfers and we receive some payments before 6 April 2010, but others are outstanding, it will not be possible for the client to crystallise any transfers that come in after 5 April until they are at least 55.
Again, in this situation, your New Business Consultant will contact you to ask whether the money should be returned to the ceding provider. Clients can still take the benefits from the transfers received before 6 April 2010.
Get in touch
For more information please contact your Scottish Life representative or phone 0845 60 40 800.
For professional advisers only
